Special Situations Fund | Liontrust Asset Management PLC

Fund launch date 10/11/2005

Fund size £3,850,883,120.06

Number of holdings 56

Managed by current team for 18 years

The Fund

The multi-award-winning Fund has been managed since launch in November 2005 by Anthony Cross, who was joined by co-managers Julian Fosh in 2008 and Victoria Stevens and Matt Tonge in 2023. The Fund aims to deliver capital growth over the long term (5 years or more) through using the Economic Advantage investment process. The process seeks to identify companies with a durable competitive advantage that allows them to defy industry competition and sustain a higher than average level of profitability for longer than expected. The Fund invests at least 90% of the portfolio in companies incorporated, domiciled or which conduct significant business in the United Kingdom (UK).

You are able to redeem your investment from the Fund at any time and there is no exit fee for doing so.

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Past performance does not predict future returns. You may get back less than you originally invested. Reference to specific securities is not intended as a recommendation to purchase or sell any investment.

Key Information

Manager Inception Date of Fund

10/11/2005

Class Launch Date

01/11/2010

Comparator Benchmark 1

FTSE All Share

Comparator Benchmark 2

IA UK All Companies

Price

Single Price

448.550p

Offer Price

452.530p

Price Date

28/11/2023

Awards and ratings

Morningstar Rating: 5

Morningstar Analyst Rating: Bronze

Square Mile Rating: AA

RSMR Rated Fund

Fund Calibre Elite Rated Fund

Morningstar Sustainability Rating: 4

Meet the team

Anthony Cross joined Liontrust from Schroders in 1997 and launched the UK Smaller Companies Fund a year later. Anthony, who has managed the UK Smaller Companies and Special Situations funds since launch, was joined by Julian Fosh in 2008. Julian had previously managed funds at Scottish Amicable Investment Managers, Britannic Investment Managers, Scottish Friendly Assurance Society and Saracen Fund Managers. Victoria Stevens and Matt Tonge joined the team in 2015, and became managers of the Special Situations Fund in 2023. Victoria was previously Deputy Head of Corporate Broking at FinnCap, while Matt had spent nine years on the Liontrust dealing desk, latterly winning an industry award for his work in mid and small cap stocks.

More about the team

Our Investment Process

The process seeks to identify companies that possess intangible assets which produce barriers to competition and provide a durable competitive advantage that allows the companies to defy industry competition and sustain a higher than average level of profitability for longer than expected.

In the fund managers’ experience, the hardest characteristics for competitors to replicate are three classes of intangible asset: intellectual property, strong distribution channels and significant recurring business.

Other less powerful but nonetheless important intangible strengths include franchises and licenses; good customer databases and relationships; effective procedures and formats; strong brands and company culture

These intangible assets produce barriers to competition, protect margins and are capable, in the opinion of the fund managers, of reaping a financial advantage in the form of cash flow returns in excess of the cost of capital. A company that consistently generates excess cash flow returns will benefit from compounding as it reinvests this excess return into the business.

The Fund has hallmarks of a ‘quality’ style of investing – companies generating high, consistent returns with strong solvency or balance sheets. Quality companies will often outperform in difficult economic conditions. There is a tilt away from companies characterised as ‘value’ – typically companies whose shares appear cheap when assessed on measures of tangible asset value. Value companies often perform well when interest rates rise.

Performance

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Performance since manager inception date (%)

Discrete performance (%)

As at previous quarter 12 months ending:	Sep 23	Sep 22	Sep 21	Sep 20	Sep 19
Liontrust Special Situations	8.6	-16.0	27.6	-3.7	2.8
FTSE All Share	13.8	-4.0	27.9	-16.6	2.7
IA UK All Companies	12.8	-15.3	32.4	-12.8	0.0
Quartile Ranking	4	3	3	1	2

Cumulative performance (%)

As at previous day end	1 month	3 months	6 months	YTD	1 year	3 years	5 years	10 years	Since Inception
Liontrust Special Situations	4.5	0.5	-2.8	-1.4	-4.2	10.3	21.6	101.1	495.2
FTSE All Share	3.8	2.5	-0.2	3.5	3.0	25.8	26.6	64.2	183.8
IA UK All Companies	4.9	1.3	-1.3	1.5	0.7	13.8	18.3	51.0	160.2
Quartile Ranking	2	3	4	4	4	3	3	1	-

Source: FE fundinfo as at 28/11/2023. Performance figures are shown in GBX. Total return performance figures are calculated net of costs and charges, on a bid price to bid price basis (mid to mid for OEICs) with net income (dividends) reinvested. Where applicable the quartile rank is for the primary share class within the sector. If your investment is made in a currency other than that used in the past performance calculation the return may increase or decrease as a result of currency fluctuations.

Current positioning

Top 10 Holdings (%)

SHELL PLC	3.42
RELX PLC	3.36
GSK PLC	3.35
BP	3.30
COMPASS GROUP PLC	3.29
ASTRAZENECA PLC	3.28
UNILEVER PLC	3.21
RECKITT BENCKISER GROUP PLC	3.19
SAGE GROUP	3.18
DIAGEO PLC	3.18

Sector Breakdown (%)

Industrials	25.75
Consumer Discretionary	19.93
Financials	11.39
Consumer Staples	9.59
Health Care	8.89
Energy	8.49
Technology	7.18
Money Market	3.80
Telecommunications	2.49
Real Estate	2.44

Geographic Breakdown (%)

Source: Liontrust as at 31/10/2023.
UK	96.19
Money Market	3.80

Capitalisation (%)

Additional Information

Minimum initial investment

£5,000,000

Minimum additional investment

£100,000

Ex-dividend date

1 June (Final)

Distribution date

31 July (Final)

Sedol code

B57H4F1

ISIN code

GB00B57H4F11

Charges

Initial charge

Ongoing Charges Figure

0.81%

Included within the OCF is the Annual Management Charge

0.75%

For more information on the OCF, see our costs and charges page.

Key fund literature

Factsheet I Inc KIID I Inc Liontrust Unit Trust Funds - Prospectus

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Fund Manager Insights

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Assessment of Value Read the report

Key Risks

Past performance is not a guide to future performance. The value of an investment and the income generated from it can fall as well as rise and is not guaranteed. You may get back less than you originally invested. The issue of units/shares in Liontrust Funds may be subject to an initial charge, which will have an impact on the realisable value of the investment, particularly in the short term. Investments should always be considered as long term.

A proportion of the portfolio is invested in smaller companies and companies traded on the Alternative Investment Market. These stocks may be less liquid and the price swings greater than those in, for example, larger companies.

Disclaimer

This is a marketing communication. Before making an investment, you should read the relevant Prospectus and the Key Investor Information Document (KIID), which provide full product details including investment charges and risks. These documents can be obtained, free of charge, from www.liontrust.co.uk or direct from Liontrust. Always research your own investments. If you are not a professional investor please consult a regulated financial adviser regarding the suitability of such an investment for you and your personal circumstances.

This should not be construed as advice for investment in any product or security mentioned, an offer to buy or sell units/shares of Funds mentioned, or a solicitation to purchase securities in any company or investment product. Examples of stocks are provided for general information only to demonstrate our investment philosophy. The investment being promoted is for units in a fund, not directly in the underlying assets. It contains information and analysis that is believed to be accurate at the time of publication, but is subject to change without notice. Whilst care has been taken in compiling the content of this document, no representation or warranty, express or implied, is made by Liontrust as to its accuracy or completeness, including for external sources (which may have been used) which have not been verified. It should not be copied, forwarded, reproduced, divulged or otherwise distributed in any form whether by way of fax, email, oral or otherwise, in whole or in part without the express and prior written consent of Liontrust.